Connect with us

Business

Court stops sale of Shell assets in Nigeria as it plans to exit

Published

on

Shell Plc has been stopped from selling any of its assets in Nigeria as the oil company looks to diversify from oil production.

The order was handed down by a court of appeal on Monday which noted that the firm could only sell after it pays the $2 billion penalty appeal for an alleged oil spill.

A panel of three judges said Shell, acting through its agents or subsidiaries, was restrained from “selling, allocating, vandalising or disposing off any of its assets/properties” pending the determination of the appeal.

A report by Reuters, quoting a copy of a court ruling issued on March 11, showed that Shell was ordered to deposit the money in an account controlled by the court within two working days.

The energy firm’s appeal hearing is set to begin on May 5.

A spokesperson for Shell’s Nigeria unit said the company would immediately appeal the decision, Reuters reported.

READ ALSO: Chevron, Shell, four others to pay Nigeria N249.3bn in January

“We are disappointed at this outcome. We have a strong belief in the merit of our case and will take immediate steps under the law to appeal and stay the execution of the decision until the appeal is determined,” the spokesperson said.

Shell started talks with the Nigerian government last year about selling its stake in Nigeria’s onshore fields, where it has been active since the 1930s, as part of a global drive to reduce its carbon emissions.

Last year, it agreed to pay a Nigerian community $111.68 million to settle a case of oil spill that took place more than 50 years ago.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations